Enron’s Skilling gets more than 10 years cut off sentence

Updated 1:56 pm, Friday, June 21, 2013

Former Enron CEO Jeff Skilling arrives to Bob Casey Federal Courthouse Friday, June 21, 2013, for a new sentencing hearing.

Former Enron CEO Jeff Skilling arrives to Bob Casey Federal Courthouse Friday, June 21, 2013, for a new sentencing hearing.

Photo: Melissa Phillip, Houston Chronicle

Image 2 of 41

Former Enron CEO Jeff Skilling arrives to Bob Casey Federal Courthouse Friday, June 21, 2013, for a new sentencing hearing.

Former Enron CEO Jeff Skilling arrives to Bob Casey Federal Courthouse Friday, June 21, 2013, for a new sentencing hearing.

Photo: Melissa Phillip, Houston Chronicle

Image 3 of 41

Former Enron CEO Jeffrey Skilling, center, wearing leg restraints is escorted into the Bob Casey Federal Courthouse after arriving for a resentencing hearing Friday, June 21, 2013, in Houston.

Former Enron CEO Jeffrey Skilling, center, wearing leg restraints is escorted into the Bob Casey Federal Courthouse after arriving for a resentencing hearing Friday, June 21, 2013, in Houston.

Photo: Melissa Phillip, Houston Chronicle

Image 4 of 41

Jeffrey Skilling, convicted former Enron Corp. chief executive officer, arrives to the Bob Casey Federal Courthouse in Houston, Texas, U.S., on Friday, June 21, 2013. Skilling is set to appear in court to learn how much longer he’ll stay in prison for spearheading the fraud that destroyed the world’s largest energy trader. Photographer: Aaron M. Sprecher/Bloomberg *** Local Caption *** Jeffrey Skilling less

Jeffrey Skilling, convicted former Enron Corp. chief executive officer, arrives to the Bob Casey Federal Courthouse in Houston, Texas, U.S., on Friday, June 21, 2013. Skilling is set to appear in court to learn ... more

Photo: Aaron M. Sprecher, Bloomberg

Image 5 of 41

Jeffrey Skilling, convicted former Enron Corp. chief executive officer, arrives to the Bob Casey Federal Courthouse in Houston, Texas, U.S., on Friday, June 21, 2013. Skilling is set to appear in court to learn how much longer he’ll stay in prison for spearheading the fraud that destroyed the world’s largest energy trader. Photographer: Aaron M. Sprecher/Bloomberg *** Local Caption *** Jeffrey Skilling less

Jeffrey Skilling, convicted former Enron Corp. chief executive officer, arrives to the Bob Casey Federal Courthouse in Houston, Texas, U.S., on Friday, June 21, 2013. Skilling is set to appear in court to learn ... more

Photo: Aaron M. Sprecher, Bloomberg

Image 6 of 41

Jeffrey Skilling, convicted former Enron Corp. chief executive officer, arrives to the Bob Casey Federal Courthouse in Houston, Texas, U.S., on Friday, June 21, 2013. Skilling is set to appear in court to learn how much longer he’ll stay in prison for spearheading the fraud that destroyed the world’s largest energy trader. Photographer: Aaron M. Sprecher/Bloomberg *** Local Caption *** Jeffrey Skilling less

Jeffrey Skilling, convicted former Enron Corp. chief executive officer, arrives to the Bob Casey Federal Courthouse in Houston, Texas, U.S., on Friday, June 21, 2013. Skilling is set to appear in court to learn ... more

Photo: Aaron M. Sprecher, Bloomberg

Image 7 of 41

Former Enron CEO Jeffrey Skilling, top center, arrives to the Bob Casey Federal Courthouse for a resentencing hearing Friday, June 21, 2013, in Houston.

Former Enron CEO Jeffrey Skilling, top center, arrives to the Bob Casey Federal Courthouse for a resentencing hearing Friday, June 21, 2013, in Houston.

Photo: Melissa Phillip, Houston Chronicle

Image 8 of 41

Former Enron CEO Jeffrey Skilling, top center, arrives to the Bob Casey Federal Courthouse for a resentencing hearing Friday, June 21, 2013, in Houston.

Former Enron CEO Jeffrey Skilling, top center, arrives to the Bob Casey Federal Courthouse for a resentencing hearing Friday, June 21, 2013, in Houston.

Photo: Melissa Phillip, Houston Chronicle

Image 9 of 41

Former Enron CEO Jeffrey Skilling arrives to the Bob Casey Federal Courthouse for a resentencing hearing Friday, June 21, 2013, in Houston.

Former Enron CEO Jeffrey Skilling arrives to the Bob Casey Federal Courthouse for a resentencing hearing Friday, June 21, 2013, in Houston.

Photo: Melissa Phillip, Houston Chronicle

Image 10 of 41

Former Enron CEO Jeffrey Skilling, right, partial shown behind a wall, is escorted into the Bob Casey Federal Courthouse after arriving for a resentencing hearing Friday, June 21, 2013, in Houston.

Former Enron CEO Jeffrey Skilling, right, partial shown behind a wall, is escorted into the Bob Casey Federal Courthouse after arriving for a resentencing hearing Friday, June 21, 2013, in Houston.

Photo: Melissa Phillip, Houston Chronicle

Image 11 of 41

Former Enron CEO Jeffrey Skilling, left, is escorted into the Bob Casey Federal Courthouse after arriving for a resentencing hearing Friday, June 21, 2013, in Houston.

Former Enron CEO Jeffrey Skilling, left, is escorted into the Bob Casey Federal Courthouse after arriving for a resentencing hearing Friday, June 21, 2013, in Houston.

Photo: Melissa Phillip, Houston Chronicle

Image 12 of 41

In total, 32 people and one firm had charges brought before federal courts stemming from the energy giant's fallout. See what happened to some of the biggest players in the Enron scandal.

In total, 32 people and one firm had charges brought before federal courts stemming from the energy giant's fallout. See what happened to some of the biggest players in the Enron scandal.

Photo: Dave Rossman, Special To The Chronicle

Image 13 of 41

Ken Lay was the chief executive officer for Enron, and like former Enron President Jeff Skilling, he became one of the focal points during the Enron trial. Lay was tried with Skilling, but Lay's conviction was thrown out after he died during sentencing. less

Ken Lay was the chief executive officer for Enron, and like former Enron President Jeff Skilling, he became one of the focal points during the Enron trial. Lay was tried with Skilling, but Lay's conviction was ... more

Photo: Steve Ueckert, Houston Chronicle

Image 14 of 41

Jeff Skilling, center, was the president of Enron, and he became one of the key figures during the criminal trial. Skilling is serving a 24-year prison term for conspiracy, securities fraud, false statements and insider trading charges. The U.S. Supreme Court said prosecutors used a legal theory improperly and returned case to lower court, which upheld the convictions. His sentence was reduced however due to earlier ruling that a Houston judge erred in applying sentencing guidelines. less

Jeff Skilling, center, was the president of Enron, and he became one of the key figures during the criminal trial. Skilling is serving a 24-year prison term for conspiracy, securities fraud, false statements ... more

Photo: DAVID J. PHILLIP, AP

Image 15 of 41

Former Enron chief financial officer Andrew Fastow pleaded guilty to two conspiracy counts and testified against CEO Ken Lay and President Jeff Skilling. He is finishing a 6-year sentence that ends Dec. 17 at his Houston home. As of 2011, he was working as document review clerk for a Houston law firm. less

Former Enron chief financial officer Andrew Fastow pleaded guilty to two conspiracy counts and testified against CEO Ken Lay and President Jeff Skilling. He is finishing a 6-year sentence that ends Dec. 17 at ... more

Photo: Brett Coomer, Getty Images

Image 16 of 41

Lea Fastow was the assistant treasurer and CFO Andrew Fastow's wife. She pleaded guilty to lying on her tax return and served a 1-year sentence. As of 2011, she was running an art consulting firm under her maiden name, Lea Weingarten. less

Lea Fastow was the assistant treasurer and CFO Andrew Fastow's wife. She pleaded guilty to lying on her tax return and served a 1-year sentence. As of 2011, she was running an art consulting firm under her ... more

Photo: MELISSA PHILLIP, HOUSTON CHRONICLE

Image 17 of 41

Richard Causey (left) was the former Enron chief accounting officer. He pleaded guilty to securities fraud, and he completed the final weeks of 5-year, 6-month sentence this year at his Houston home. He is listed on LinkedIn as an "independent accounting professional." less

Richard Causey (left) was the former Enron chief accounting officer. He pleaded guilty to securities fraud, and he completed the final weeks of 5-year, 6-month sentence this year at his Houston home. He is ... more

Photo: James Nielsen, Houston Chronicle

Image 18 of 41

Michael Kopper was the managing director of Enron Global Finance under former CFO Andrew Fastow. He was the first Enron executive to enter a plea bargain and served less than two-thirds of a 37-month sentence. He was released January 2009, and as of 2011, he is now chief strategy officer for Legacy Community Health Services. less

Michael Kopper was the managing director of Enron Global Finance under former CFO Andrew Fastow. He was the first Enron executive to enter a plea bargain and served less than two-thirds of a 37-month sentence. ... more

Photo: AP

Image 19 of 41

Ben Glisan, on the right, was the treasurer for Enron before the company filed for bankruptcy and faced various criminal charges. Glisan pleaded guilty to conspiracy. He served two-thirds of his 5-year sentence. As of 2011, he was heading his own financial advisory firm, Pinyon Advisors. less

Ben Glisan, on the right, was the treasurer for Enron before the company filed for bankruptcy and faced various criminal charges. Glisan pleaded guilty to conspiracy. He served two-thirds of his 5-year ... more

Photo: PAT LOPEZ, AP

Image 20 of 41

Mark Koenig was the head of investor relations for Enron. He pleaded guilty to securities fraud and served an 18-month sentence and is now retired.

Mark Koenig was the head of investor relations for Enron. He pleaded guilty to securities fraud and served an 18-month sentence and is now retired.

Photo: Steve Ueckert, Houston Chronicle

Image 21 of 41

Former Enron investor relations executive Paula Rieker (left) pleaded guilty to insider trading. She served 2 years on probation.

Former Enron investor relations executive Paula Rieker (left) pleaded guilty to insider trading. She served 2 years on probation.

Photo: James Nielsen, Houston Chronicle

Image 22 of 41

Lawrence "Larry" Lawyer, on the right, was Enron's vice president of global markets. He pleaded guilty to failing to report income and served 2 years probation. As of 2011, he heads Houston-based Triton Investment Group, an energy investment and professional services company. less

Lawrence "Larry" Lawyer, on the right, was Enron's vice president of global markets. He pleaded guilty to failing to report income and served 2 years probation. As of 2011, he heads Houston-based Triton ... more

Photo: Steve Ueckert, Houston Chronicle

Image 23 of 41

David Delainey was the former CEO of both Enron's troubled retail division and its profit-generating North American trading unit. He pleaded guilty to insider trading and served a 9-month prison term.

David Delainey was the former CEO of both Enron's troubled retail division and its profit-generating North American trading unit. He pleaded guilty to insider trading and served a 9-month prison term.

Photo: Steve Ueckert, Houston Chronicle

Image 24 of 41

Timothy DeSpain, a former assistant treasurer at Enron Corp., was sentenced to 4 years probation and a $10,000 fine for lying to credit-rating agencies to make the financial picture at the one-time energy giant appear healthier than it was. As of 2011, he was now the president of GTL Logisitcs, a firm planning to build a hub in Port Arthur to transport oil from shale projects between refineries and chemical plants. less

Timothy DeSpain, a former assistant treasurer at Enron Corp., was sentenced to 4 years probation and a $10,000 fine for lying to credit-rating agencies to make the financial picture at the one-time energy giant ... more

Photo: DAVID J. PHILLIP, AP

Image 25 of 41

David Duncan, on the left, was an Arthur Anderson auditor. He withdrew his guilty plea after the Supreme Court reversed firm's conviction. He settled the Securities and Exchange Commission's complaint of securities laws violations, and as of 2011, he was serving as vice president and chief financial officer of Houston-based U.S. Pipeline. less

David Duncan, on the left, was an Arthur Anderson auditor. He withdrew his guilty plea after the Supreme Court reversed firm's conviction. He settled the Securities and Exchange Commission's complaint of ... more

Photo: MICHAEL STRAVATO, AP

Image 26 of 41

John Forney was a former corporate executive with Enron. He pleaded guilty to illegally manipulating California's electricity prices from the company's Portland office. He served 2 years probation.

John Forney was a former corporate executive with Enron. He pleaded guilty to illegally manipulating California's electricity prices from the company's Portland office. He served 2 years probation.

Photo: PAUL SAKUMA, AP

Image 27 of 41

Joe Hirko, the former head of Enron's Broadband business, pleaded guilty and was sentenced to 16 months on charges that he overstating performance of the broadband division. He served a 16-month sentence, and as of 2011, he said on LinkedIn that he was running a party supply business. less

Joe Hirko, the former head of Enron's Broadband business, pleaded guilty and was sentenced to 16 months on charges that he overstating performance of the broadband division. He served a 16-month sentence, and ... more

Photo: Mayra Beltran, Houston Chronicle

Image 28 of 41

Kenneth Rice, former chief of Enron Corp.'s high-speed Internet unit, was sentenced to 27 months in prison for securities fraud. He served the sentence and he now works in investments.

Kenneth Rice, former chief of Enron Corp.'s high-speed Internet unit, was sentenced to 27 months in prison for securities fraud. He served the sentence and he now works in investments.

Photo: PAT SULLIVAN, AP

Image 29 of 41

Rex Shelby, center in handcuffs, was the vice president of engineering operations at Enron Broadband. He was one of the last of the Enron employees to be sentenced and pleaded guilty to one count of insider trading and was sentenced to 2 years probation. As of 2011, he was now working in the high-tech industry with pre-Enron colleagues. less

Rex Shelby, center in handcuffs, was the vice president of engineering operations at Enron Broadband. He was one of the last of the Enron employees to be sentenced and pleaded guilty to one count of insider ... more

Photo: Carlos Antonio Rios, Houston Chronicle

Image 30 of 41

Appeals court dismissed broadband charges against Scott Yeager, a former Enron Broadband executive, after the case went to U.S. Supreme Court. Yeager says he's semi-retired. As of 2011, he was running a small ranch and working with small technology companies on sales and product development. less

Appeals court dismissed broadband charges against Scott Yeager, a former Enron Broadband executive, after the case went to U.S. Supreme Court. Yeager says he's semi-retired. As of 2011, he was running a small ... more

Photo: Julio Cortez, Houston Chronicle

Image 31 of 41

Kevin Hannon was the chief operating officer for Enron Broadband. He pleaded guilty to conspiracy in the Broadband case. He served a 2-year sentence. As of 2011, he was acting as president of Clarity Risk Management Services, a company he founded. less

Kevin Hannon was the chief operating officer for Enron Broadband. He pleaded guilty to conspiracy in the Broadband case. He served a 2-year sentence. As of 2011, he was acting as president of Clarity Risk ... more

Photo: Buster Dean, Houston Chronicle

Image 32 of 41

Kevin Howard, left, is the former chief financial officer of Enron's Broadband unit. He pleaded guilty to one count of falsifying records in the Broadband case. He served a 1-year probation. As of 2011, he was serving as vice president and general manager at Kinder Morgan Natural Gas Pipelines. less

Kevin Howard, left, is the former chief financial officer of Enron's Broadband unit. He pleaded guilty to one count of falsifying records in the Broadband case. He served a 1-year probation. As of 2011, he was ... more

Photo: PAT SULLIVAN, AP

Image 33 of 41

Michael Krautz, a former accounting director for Enron Broadband Services, was found not guilty during the Enron Broadband case.

Michael Krautz, a former accounting director for Enron Broadband Services, was found not guilty during the Enron Broadband case.

Photo: Steve Ueckert, Houston Chronicle

Image 34 of 41

Former Merrill Lynch banker William Fuhs, right, was found guilty of one conspiracy count and two counts of wire fraud. However, his conviction was thrown out on appeal.

Former Merrill Lynch banker William Fuhs, right, was found guilty of one conspiracy count and two counts of wire fraud. However, his conviction was thrown out on appeal.

Photo: TIM JOHNSON, FOR THE CHRONICLE

Image 35 of 41

Former Merrill Lynch executive James A. Brown was convicted of wire fraud and conspiracy in a sham sale of some Nigerian power-plant barges charges. Some of the charges against Brown were thrown out on appeal, and he served 47 months on remaining charges. less

Former Merrill Lynch executive James A. Brown was convicted of wire fraud and conspiracy in a sham sale of some Nigerian power-plant barges charges. Some of the charges against Brown were thrown out on appeal, ... more

Photo: BRETT COOMER, HOUSTON CHRONICLE

Image 36 of 41

Robert Furst, left, was the former managing director of Merrill Lynch. He was tried in the Nigerian barge case, but his conviction thrown out on appeal.

Robert Furst, left, was the former managing director of Merrill Lynch. He was tried in the Nigerian barge case, but his conviction thrown out on appeal.

Photo: DENNIS COOK, AP

Image 37 of 41

Former Merrill Lynch executive Daniel Bayly was sentenced to 30 months in prison for his participation in Enron's sale of power barges to the brokerage. His conviction was thrown out on appeal.

Former Merrill Lynch executive Daniel Bayly was sentenced to 30 months in prison for his participation in Enron's sale of power barges to the brokerage. His conviction was thrown out on appeal.

Photo: MICHAEL STRAVATO, AP

Image 38 of 41

Former Enron executive Dan Boyle, right, was convicted in the Nigerian barge case. He did not appeal and served a 3-year, 10-month sentence.

Former Enron executive Dan Boyle, right, was convicted in the Nigerian barge case. He did not appeal and served a 3-year, 10-month sentence.

Photo: DAVID J. PHILLIP, AP

Image 39 of 41

Sheila Kahanek (left) was the former Enron accountant. She was tried in the Nigerian barge case, but she was acquitted.

Sheila Kahanek (left) was the former Enron accountant. She was tried in the Nigerian barge case, but she was acquitted.

Photo: James Nielsen, Special To The Chronicle

Image 40 of 41

British former bankers (from left to right) Gary Mulgrew, Giles Darby, and David Bermingham pleaded guilty to misleading their former employer in an Andrew Fastow finance scheme. They each were sentenced to 3 years, 1 month. They are now out of prison, and as of 2011, they were self-employed. less

British former bankers (from left to right) Gary Mulgrew, Giles Darby, and David Bermingham pleaded guilty to misleading their former employer in an Andrew Fastow finance scheme. They each were sentenced to 3 ... more

Photo: STEPHEN HIRD, REUTERS

Image 41 of 41

Enron’s Skilling gets more than 10 years cut off sentence

1 / 41

Back to Gallery

The long-running battle between federal prosecutors and former Enron CEO Jeff Skilling formally came to an end Friday when U.S. District Judge Sim Lake signed off on a negotiated sentence agreement that will end Skilling's incarceration in about four years.

In agreeing to the minimum sentence within the range of 168 and 210 months, Lake said the interest of justice would not be served by having Skilling serve longer. He noted that the architect of Enron's rise from an obscure pipeline company to an innovative and diverse energy giant will end up spending more time in prison than anyone else connected to the company's stunning 2001 collapse into bankruptcy.

"This is not an easy decision to make," Lake said about the number of months to choose.

"The two most significant factors are the need for the sentence to deter others from similar action and to reflect the seriousness of the offense — 168 months adequately reflects both concerns. The court is not persuaded a longer sentence is necessary."

Appellate reversals of part of the government's case against Skilling, as well as one of grounds used by Lake in setting the original sentence of 24 years, meant that Skilling already was entitled to a reduced sentence. The agreement knocked about 20 months off the lower end of the revised sentence range, in exchange for which Skilling agreed to forgo any further appeals.

Ex-Breitbart Spokesman: Website Will Support Trump Impeachment If He 'Goes the Other Way'Buzz60

UK crackdown on social media hate crimeEuronews_News

Bill Gates Just Gave 5% of His Fortune to CharityFortuneTime

Which Members of Congress Have The Most Facebook Followers?Buzz60

This Company Calls Itself the ‘Amazon of Real Estate’FortuneTime

That finality, which brings the Enron saga to a close, frees up about $40 million in Skilling's assets to be divided among investors, protects the government from the possibility of more appeals reversals and assures Skilling of at least the possibility of having an extended period of time as a free man before he dies.

He has been in federal custody since December 2006, about two months after he and Enron Chairman Ken Lay were convicted of various financial crimes. Lay died of a heart attack before being sentence.

"This is absolutely a resonable resolution," said attorney Philip Hilder, a onetime federal prosecutor who represented so-called Enron whistleblower Sheron Watkins, an accountant who became famous when her memo to Lay warning of the consequences of potential accounting scandals became public. "It frees up about $41 million and puts and end to the appeals. And Skilling will have served a significant amount of time."

In accordance with the terms of the agreement, government attorneys did not recommend a particular sentence within the negotiated range. However, prosecutor Patrick Stokes emphasized that Skilling, while not a criminal in the sense of corporate looter, used deceptive accounting to keep the company from having to face the consequences of bad business decisions.

"He had a tremendous work ethic and was very talented," Stokes said. "That's where the contradiction comes in. He (eventually) used those talents to lie and cheat. Why he did it, we don't know. But he used lies to hide from the public and the people of Enron what was going on."